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Back in the day, dividend stock GSK (LSE: GSK) felt like a no-brainer-buy for income and growth, but it’s completely lost its way. CEO Emma Walmsley froze the dividend for years and diverted the money into R&D, but we’re still waiting for the drugs pipeline to start flowing smoothly.
The stock’s fallen 10% in the last year and now trades at roughly the same level as a decade ago. Adding insult to injury, its major FTSE 100 rival AstraZeneca has cruised ahead.
Fallen FTSE 100 income star
I bought GSK 18 months ago, thinking I was picking up a bargain with recovery potential. But since adding the stock to my Self-Invested Personal Pension (SIPP), it’s been hit by two blows.
First, the class-action suit over Zantac. GSK was forced to stumped up $2.2bn to resolve around 80,000 cases in the US, plus another $70m to settle a related whistle-blower claim. That lifted the…
